In the Book Non Credit Loss Adjustment panel, you can adjust or fully/partially reverse the noncredit loss associated with a previously entered impairment. This option allows you to record non-credit loss adjustments when credit losses are not applicable. You can adjust the loss by lot only for a single entity. Entering a negative amount in this panel increases the loss while entering a positive amount decreases the loss.
When you process an impairment, you can include credit/non-credit losses for the impairment in certain cases. When you book a subsequent impairment, the system reverses the previous noncredit loss. You can then use the Book Non Credit Loss Adjustment panel to adjust the noncredit loss.
To adjust the non-credit loss associated with an impairment:
- In Accounting Center, in the left navigation pane, click Transactions> Adjustments> Cost Adjustments > Book Non Credit Loss Adjustment.
You see the Book Non Credit Loss Adjustment panel. - In the Entity Information section, identify the entity and accounting basis associated with the adjustment.
- In the Security Information section, identify the security associated with the adjustment.
- Click the Choose Open Lot field and select the open lot associated with the adjustment.
- Click the Increase/Decrease Switch field and indicate whether the adjustment increases or decreases non-credit loss.
Options include:
- Increase Noncredit Loss. If you want the adjustment to increase non-credit loss, you must specify a positive adjustment amount.
- Decrease Noncredit Loss. If you want the adjustment to decrease non-credit loss, you must specify a negative adjustment amount. - Click the Non-Credit Loss Local Adjustment field and specify the amount of the non-credit loss adjustment.
A negative amount decreases the loss. A positive amount increases the loss. - Complete the options on the Book Non Credit Loss Adjustment panel.
In the Transaction Notes field, you can enter a note about the transaction - Click Submit.
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